ECB Policymaker Holzmann Open to June Rate Cut, Wants More Supportive Data

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ECB,Rate Cut,Supportive Data

European Central Bank (ECB) policymaker Robert Holzmann has expressed openness to a rate cut in June but wants to see more supportive data. He believes that cutting rates out of sync with the Fed would diminish the impact of policy easing. Holzmann also suggests that the ECB needs to stop subsidizing commercial banks and should cut interest payments on the cash lenders received from the central bank. The market reaction to these comments has been minimal.

European Central Bank ( ECB ) policymaker Robert Holzmann said in a Reuters interview on Wednesday, “I have no in-principle objection to a June rate cut but want to see more supportive data .” Additional quotes Cutting rates out of sync with the Fed would diminish impact of policy easing . Given weak productivity in Eurozone, 3.0% deposit rate may still prove too tight over longer term. It’s possible that inflation may even do better than ECB projections.

ECB needs to stop subsidizing commercial banks and should cut interest payments on the piles of cash lenders got from the central bank on the cheap. Market reaction At the time of writing, EUR/USD is adding 0.08% on the day to trade at 1.0776, little affected by the above comments. ECB FAQs What is the ECB and how does it influence the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the regio

ECB Rate Cut Supportive Data Policy Easing Commercial Banks Interest Payments Market Reaction

 

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